Purchaser from Gas Aggregator Held Liable for Aggregator's Nonpayment to Seller

摘要

The court in Reliant Energy Services, Inc. v. Cotton Valley Compression, L.L.C., No. 01-08-00148-CV, 2011 WL 480982 (Tex. App.—Houston [1st Dist] Feb. 10, 2011, no pet), was faced with the result of the unfortunate dealings between Cotton Valley, a northeastern Oklahoma gas seller, and Westfield Oil and Gas, a small natural gas trading company. Cotton Valley, impressed with Westfield's representation that their relationship with Reliant Energy, a major company, would enable them to arrange for the delivery of Cotton Valley's gas directly to Reliant, entered into a one-month contract on March 31, 1999, for the sale of its gas to Westfield. Id. at *3. Although the contract was only for the ensuing month, Cotton Valley continued to sell gas to Westfield for delivery directly to Reliant until mid-2001. Westfield negotiated its price with Cotton Valley and paid it monthly, but there was frequent direct contact between Cotton Valley and Reliant's accounting department, and Cotton Valley and Reliant regularly agreed on imbalance transfers between themselves. Cotton Valley communicated monthly nominations for gas deliveries directly to Reliant, albeit with copies to Westfield. Id. In late July 2001, Cotton Valley dealt directly with Reliant about price and an increased nomination for that month's gas to accommodate additional gas that had become available. Id. at *7.